Chipmakers NVIDIA and AMD have agreed to pay 15% of their revenue from sales to China to the US government, according to a report by Reuters. This arrangement is part of a deal to secure export licenses for advanced computer chips that are used for AI applications. This includes NVIDIA’s H20 and AMD’s MI308. Furthermore, a US official confirmed that the Commerce Department has started to issue permits for the sale of H20 chips to China.
Back in April, the Trump administration banned the sale of the H20 chips to China. However, the government later reversed this decision, allowing the company to resume sales. NVIDIA announced last month that it hoped to begin delivering the chips soon.
The report noted that when asked about the 15% cut, a NVIDIA spokesperson stated that the company follows the regulations dictated by the US government for its participation in global markets. The spokesperson went on to add that the company has not shipped H20 to China in months, and hoped the export control rules would enable America to compete in China and the rest of the world.
Meanwhile, both AMD and the US Commerce Department did not respond to a request for comment on this agreement. The Trump administration apparently has yet to decide on what to do with the money it will receive from the chipmakers.
Previously, US Commerce Secretary Howard Lutnick stated that resuming the AI chip sales was part of the country’s negotiations with China to acquire rare earth materials. He also explained that Chinese companies using American technology would be for the US’ benefit.
Moreover, the Trump administration reportedly does not view the sale of H20 chips to the region as a security threat. The US official also asserted that the arrangement will comply with the law. However, they did not know when or how it will be implemented. Former Commerce Department adviser criticised the agreement, claiming that the administration is trading away national security protections for profit.
(Source: Reuters)
